LEARNING OUTCOME

• Able to understand that how the concept of management evolved.

• Able to understand different approaches of management.

MANAGEMENT
THEORIES
EVOLUTION OF MANAGEMENT THOUGHTS
 THE EVOLUTION OF MANAGEMENT CAME INTO
EXISTENCE IN THE DAYS OF CHANDRA GUPTA
MAURYA. MANAGEMENT CURRENT TRENDS WERE
PRACTICES AND WERE DESCRIBED THERE.
 CHANDRA GUPTA ACQUIRED THE POWER AND
AUTHORITY OVER THE ENTIRE INDIAN SUBCONTINENT
,WHICH BY COMMON MANAGEMENT PRINCIPLES
ALIGN TO SETTING OBJECTIVES AND WORKING
TOWARDS ITS EFFECTIVENESS BY INDENTIFYING THE
POTENTIAL.
OTHER ASPECTS OF MANAGEMENT
APPROACHES
 MANAGEMENT APPROACHES GRADUALLY ESTABLISHES BY
KAUTILYA AND ALIGNED (POLISHED) IMPROVED BY DRUCKER
PRINCIPLES .STUDYING THE IMPACT OF EXTERNAL FACTORS
AFFECTING THE ORGANISATION, I.E STRENGTH OF THE KINGDOM
THEIR THREATS ,AMBITION
 SETTING THE REALISTIC TARGETS
 DIVERSIFICATION OF ECONOMY
 FORMULATION OF POLICIES AND PROCEDURES
 INVESTMENT PROVISION
 DECENTRALIZATION OF POWER
HISTORICAL PERSPECTIVE
 A. THE EGYPTIAN PYRAMIDS AND THE GREAT WALL OF CHINA
ARE GOOD EXAMPLES OF PROJECTS OF TREMENDOUS SCOPE AND
MAGNITUDE THAT EMPLOYED TENS OF THOUSANDS OF PEOPLE.
HOW WAS IT POSSIBLE FOR THESE PROJECTS TO BE COMPLETED?
THE ANSWER IS MANAGEMENT.

 B. OTHER EXAMPLES OF EARLY MANAGEMENT PRACTICES CAN

BE SEEN THROUGH ASSEMBLY LINES, ACCOUNTING SYSTEMS,
AND PERSONNEL FUNCTIONS AS JUST A FEW OF THE PROCESSES
AND ACTIVITIES IN ORGANIZATIONS AT THAT TIME THAT ARE
ALSO COMMON TO TODAY’S ORGANIZATIONS.
C. ADAM SMITH, AUTHOR OF THE CLASSICAL ECONOMICS
DOCTRINE, THE WEALTH OF NATIONS, ARGUED
BRILLIANTLY ABOUT THE ECONOMIC ADVANTAGES THAT
DIVISION OF LABOR WOULD BRING TO ORGANIZATIONS AND
SOCIETY.

D. THE INDUSTRIAL REVOLUTION CAN BE THOUGHT OF AS

POSSIBLY THE MOST IMPORTANT PRE-TWENTIETH-CENTURY
INFLUENCE ON MANAGEMENT. THE INTRODUCTION OF MACHINE
POWERS, COMBINED WITH THE DIVISION OF LABOR, MADE LARGE,
EFFICIENT FACTORIES POSSIBLE. PLANNING, ORGANIZING,
LEADING, AND CONTROLLING BECAME NECESSARY.
CLASSICAL APPROACHES
((IMP)
1. SCIENTIFIC SCHOOL OF MANAGEMENT
2. ADMINISTRATIVE SCHOOL OF MANAGEMENT
3. BUREAUCRATIC ORGANISATION
NEO CLASSICAL SCHOOL OF
MANAGEMENT

1. Behavioural school and human relation

Modern School of Management

• System school of management
• Social system
• Contingency school/situational approach
OTHER SCHOOL OF
MANAGEMENT
• EMPIRICAL SCHOOL OF MANAGEMENT
• MANAGEMENT PROCESS SCHOOL
• DECISION THEORY SCHOOL
• QUANTITATIVE OR MATHEMATICAL SCHOOL
• HUMAN RESOURCE APPROACH
 CLASSICAL APPROACHES (1900-1920)
1. CLASSICAL MANAGEMENT THEORY EVOLVED AS A RESULT OF THE
INDUSTRIAL REVOLUTION AND LAY SPECIAL EMPHASIS ON THE
ECONOMIC RATIONALITY OF MANAGEMENT I.E MAXIMIZATION OF
MONETARY REWARDS, IMPLYING THAT EMPLOYEES WORK FOR
MONETARY BENEFIT, AND GET HARDWORK OUT OF EMPLOYEES,
AFTERWARD GIVING THEM REWARDS.
2. THE CLASSICAL APPROACH TO MANAGEMENT EMPHASIS ON THE
FACT THAT EMPLOYEES DO HAVE PHYSICAL AND FINANCIAL NEEDS
AND DO NOT POSSESS SOCIAL NEEDS OR NEEDS OF JOB
SATISFACTION.
3. MAJOR CONTRIBUTION FREDERICK WINSLOW TALYOR, HENRY
FEYOL, MAX WEBER
 SCIENTIFIC MANAGEMENT
F.W TAYLOR STARTED HIS CAREER WITH A US BASED STEEL
COMPANY AND GOT TILL THE POSITION OF CHIEF ENGINEER IN A
SPAN OF 10 YEARS
HE CONTINUOUSLY MONITOR THE MANAGERS AND WORKERS .
TAYLOR OBSERVED THAT THESE MANAGER AND WORKER DID NOT
UNDERSTAND NOR IMPLEMENT THE SYSTEMATIC WORKLOAD
DISTRIBUTION OR TASK EXECUTION.
ACCORDING TO HIM THAT IS REQUIRED FOR IMPROVED
PRODUCTIVITY AND CONSISTENCY IN GROWTH.
HIS IDEAS WERE VERY EFFECTIVE IN AREAS SUCH AS PRODUCTION
PLANNING TASK BREAKDOWN, ALLOCATION OF TASK .
CONCEPTS :-
TAYLOR INVENTED THE CONCEPT OF SCIENTIFIC
MANAGEMENT IN WHICH HE DESCRIBED
MATHEMATICS METHODS TO SELECT AND TRAIN
PROFESSIONAL
CONCEPT OF WAGE SYSTEM AND AWARDS
STRESSED ON NEED FOR APPROPRIATE WORKING
CONDITION (ADEQUATE VENTILATION, HYGIENE SANITATION,
CANTEEN FACILITY, RECREATION AREAS)
 PRINCIPLE :-
I. SCIENTIFIC METHODS OUTWEIGH RULE OF THUMB: CLEARLY
MENTIONING THE RULES AND RESPONSIBILITIES, FAIR
WORKLOAD DISTRIBUTION ,FOLLOWING APPROPRIATE WORK
STANDARDS, HAVE APPROPRIATE COMPENSATION SCHEME
II. CREATING GROUP HARMONY : SCIENTIFIC APPROACH IN
EMPLOYEE SELECTION, TRAINING, BALANCING ROLE AND
RESPONSIBILITIES SO THAT IT GIVE HARMONY WITHIN GROUPS
III. COOPERATION:
IV. MAXIMUM OUTPUT
V. IMPROVED WORK PROCEDURE
 KEY FEATURES
SEPARATION OF PLANNING AND EXECUTION FUNCTIONS:
SCIENTIFIC STRUCTURING OF TASK
SCIENTIFIC CATEGORIZATION ACROSS WORK, METHODS,
MOTION, TIME
SCIENTIFIC WAGE ALLOCATION
STANDARDIZATION OF WORK
SCIENTIFIC SELECTION AND TRAINING
PAY INCENTIVES
ECONOMY
MINDSET TRANSFORMATION
 CRITICS
TAYLOR DID NOT CONSIDER THE MENTAL, PHYSICAL AND
EMOTIONAL WELLBEING OF THE WORKER
CRITICS OBSERVED TAYLOR LAID EMPHASIS ON PRODUCTION
MANAGEMENT
AID OF TOOLS ,EQUIPMENT MATERIAL, A WORKER HAD TO
PERFORM THE TASK AND TASK EXECUTION HE WAS INSTRUCTED
BY THE FOREMEN OR SUPERVISOR AT EVERY STEP
ANOTHER POINT RAISED WAS THE INCREASED PRODUCTIVITY
OF WORKERS INCREASED THE YIELD OF THE COMPANY BUT
WAGES DID NOT INCREASE AS PER INCREASED YIELD
 HENRY GANTT’S IDEOLOGY ON
MANAGEMENT
I. HENRY GANTT WAS A US CITIZEN AND WAS MECHANICAL
ENGINEER BY PROFESSION AND WAS A PIONEER OF SCIENTIFIC
MANAGEMENT SINCE HE WAS ASSOCIATE OF F.W .TAYLOR.
II. HE WAS THE INVENTOR OF FAMOUS TRACKING TOOL (GANTT
CHART)
III. GANTT TASK AND BONUS PLAN WERE FOUNDED BY HENRY
GANTT. GANTT AND BONUS PLAN ,WHEREIN REWARD WAS GIVEN
THOSE WHO WERE HIGHLY PRODUCTIVE ,A REFINEMENT OF
TAYLOR’S DIFFERENTIAL SYSTEM OF WAGE SYSTEM
 BUREAUCRATIC
MANAGEMENT

• Scientific management focused on the work or the job and how to

do it better.

• Bureaucratic Management focused on how to structure the

organization better so that better overall performance might be

achieved.

• Max Weber was the main author for this thought.

 CHARACTERISTICS OF
WEBER’S BUREAUCRACY
Specialization of a labor

Formalization of rules and procedures

Formalization of lines of authority into a hierarchical structure

Formalization of the career advancement process to be based on

merit
Impartial assessment
 HENRY FAYOL’S THOUGHT OF
MANAGEMENT(1841-1925)
HENRY FAYOL’S PRINCIPLE STATES THAT ALL (BUSINESS
ACTIVITIES) CAN BE CATEGORIZED INTO 6 FUNCTIONS
 PRODUCTION
 SALES AND PURCHASE
 FINANCE
 SECURITY
 ACCOUNTING
 MANAGEMENT
ACTIVITIES OF MANAGEMENT :
 PLANNING
 ORGANISING
 MANAGERIAL TRAITS
ACCORDING TO HENRY FEYOL, TRAITS OF A MANAGER
SHOULD BE :
 INDIVIDUAL SHOULD HAVE TECHNIQUE TO TAKE
DECISION , LEARNING SKILL FROM THE ENVIRONMENT ,
AND UNDERSTAND.
 SHOULD HAVE RIGHT ENTHUSIASM EFFORT , ENERGY
 SHOULD BE WILLING TO TAKE RESPONSIBILITY AND
INITIATIVES AS REQUIRED
 MANAGER SHOULD BE AWARE ABOUT GENERAL FIELD,
AS WELL AS TECHNICAL SKILL
 FAYOL’S PRINCIPLE OF MANAGEMENT
DIVISION OF WORK
AUTHORITY AND RESPONSIBILITY
DISCIPLINE
UNITY OF COMMAND
UNITY OF DIRECTION
ALIGNMENT OF INDIVIDUAL INTEREST TO GROUP
INTEREST
EMPLOYEE WAGES AND COMPENSATION
CENTRALIZATION
CONTD..

Order
Equity
Job Security
Initiative
Esprit De Corps
 SIMILARITY BETWEEN
“TAYLORISM” &
• Both “FAYOLISM”
have attempted to overcome managerial problems in a

systematic way.

• Both have emphasized that management actions can be effective if

these are based on sound principles.

• Both have emphasized harmonious relationship between management

and workers for the achievement of organizational objectives.

 “TAYLORISM” V/S “FAYOLISM”

Basis of difference Taylorism Fayolism

Perspective Shop floor level Higher management

level
Focus Efficiency through Efficiency by
work simplification observing certain
and standardization principles
Orientation Production and Managerial functions
engineering
Results Scientific Personal experiences
observation and translated into
measurement universal truths
 HAWTHORNE STUDY & HUMAN
RELATIONS

INTRODUCTION

The Hawthorne studies were conducted in order to find out the role

of human resource in increasing the production of an organization.

 HAWTHORNE EXPERIMENT

Conducted between 1924-1932

Conducted at WESTERN ELECTRIC COMPANY, Hawthorne
Plant, Chicago, USA
Conducted by,
 Elton Mayo (Psychologist)
White Head (Sociologist)
Roethlisberger (Sociologist)
William Dickson (Company Representative)
The Hawthorne studies included the following experiments…
 George Elton Mayo

He was an Australian Psychologist.

Lectured at University of Queensland before moving to the

University of Pennsylvania

Spent most of his career at Harvard Business School and was

the Professor of Industrial Research

Known as the founder of Human Relations Movement

Also known for his research including Hawthorne Studies

 EXPERIMENTS
CONDUCTED
• Illumination Experiment (1924-1927)

• Relay Assembly Test Experiments (1927-1928)

• Mass Interview Group (1928-1930)

• Bank Wiring Observation Group (1931-1932)

 ILLUMINATION
EXPERIMENTS
(1924-27)
• These experiments were performed to find out the effect of different
levels of illumination (lighting) on productivity of labor. The
brightness of the light was increased and decreased to find out the
effect on the productivity of the test group. Surprisingly, when the
intensity of illumination was decreased the production continued to
increase in both the group. The production in the experimental group
decreased was due to light falling much below the normal level.
Thus, it was concluded that illumination did not have any effect on
productivity but something else interfering with the productivity.
RELAY ASSEMBLY TEST ROOM
STUDY (1927-1929)
• Under these test two small groups of six female telephone relay
assemblers were selected. Each group was kept in separate
rooms. From time to time, changes were made in working hours,
rest periods, lunch breaks, etc. They were allowed to choose
their own rest periods and to give suggestions. Output increased
in both the control rooms. It was concluded that social
relationship among workers, participation in decision-making,
etc. had a greater effect on productivity than working conditions.
BANK WIRING
OBSERVATION ROOM
• A group of 14 male workers in the bank wiring room were
EXPERIMENT (1932)
placed under observation for six months. A worker's pay
depended on the performance of the group as a whole. The
researchers thought that the efficient workers would put pressure
on the less efficient workers to complete the work. However, it
was found that the group established its own standards of output,
and social pressure was used to achieve the standards of output.
 CHANGES AND RESULTANT OUTCOME
OF RELAY ROOM EXPERIMENT
• The incentive system was changed so that each girl’s extra pay was based on the
other five rather than output of larger group. Productivity increased as compared
to before.

• Two-five minutes rest-one in morning and other in evening session were

introduced which were increased to ten minutes. Productivity increased.

• The rest period was reduced to five minutes but frequency was increased. The
productivity decreased slightly and girls complained that frequent rest intervals
affected the rhythm of the work.

• Morning coffee or soup along with sandwich and evening snack was also
provided. Productivity increased.

• Changes in working hours and workday were introduced. Productivity increased.

MASS INTERVIEWING
PROGRAM (1928-1930)

• 21,000 employees were interviewed over a period of three

years to find out reasons for increased productivity. It was

concluded that productivity can be increased if workers are

allowed to talk freely about matters that are important to them.

REASONS FOR
RESTRICTED OUTPUT

• Fear of unemployment

• Fear of raising standards

• Protection of slower workers

 CONCLUSIONS OF
HAWTHORNE
• The STUDIES
conclusions derived from the / were as follows :-
Hawthorne Studies
EXPERIMENTS
• The social and psychological factors are responsible for workers'
productivity and job satisfaction. Only good physical working conditions
are not enough to increase productivity.

• The informal relations among workers influence the workers' behavior

and performance more than the formal relations in the organization.

• Employees will perform better if they are allowed to participate in

decision-making affecting their interests.

• Employees will also work more efficiently, when they believe that the
management is interested in their welfare.
 CRITICISM OF HAWTHORNE
STUDIES
• The / EXPERIMENTS
Hawthorne Experiments are mainly criticized on the following
grounds :-
• Lacks Validity: The Hawthorne experiments were conducted under
controlled situations. These findings will not work in real setting. The
workers under observation knew about the experiments. Therefore, they
may have improved their performance only for the experiments.
• More Importance to Human Aspects: The Hawthorne experiments
gives too much importance to human aspects. Human aspects alone
cannot improve production. Production also depends on technological
and other factors.
• More Emphasis on Group Decision-making: The Hawthorne
experiments placed too much emphasis on group decision-making. In
 CONTRIBUTIONS BY
BEHAVIORAL SCIENTIST
Contribution by Chester Bernard

• Concept of organization

• Formal and Informal organization

• Elements of organization

• Authority

• Motivation

Contribution by Peter F. Drucker

• MBO

• Organizational Change
BEHAVIORAL SCIENCE
APPROACH
• Behavioral Science Approach is an extension of the
Human Relations Approach.

• Also called "Human Resource Approach“, “Behavioral Science”,

“Leadership”. It gave importance to attitudes, behavior and
performance of individuals and groups in the organizations.

• Gave a more complex view of human beings and their needs and
motives.

• Used scientific methods to study the group behavior in

organizations.
 ASSUMPTIONS
• Organizations are socio-technical systems. The management must integrate
both the systems.

• Work and interpersonal behavior of people in the organization is influenced

by many factors.

• Employees are motivated not only by physiological needs but also by

social and psychological needs.

• Different people have different perceptions, attitudes, needs and values.

These differences must be find out and recognized by management.

• In an organization conflicts are unavoidable.

• Personal goals and Organizational goals must be joined together.

 MODERN
APPROACHS
 SYSTEMS APPROACH

The word System is taken from a Greek language which means

to bring together or to combine. A system is a set of inter-
related parts, which work together to achieve certain goals.
Ludwig von Bertalanffy is called the Father of the Systems
Approach.
The System approach views the organization as a unified ,
purposeful system composed of interrelated parts.
• An open system is a system which continuously interacts with its environment.
Whereas a closed systems refer to systems having relatively little interaction
with other systems or the outside environment.

• The closed-system approach conceives of the organization as a system of

management, technology, personnel, equipment, and materials, but tends to
exclude competitors, suppliers, distributors, and governmental regulators.

• The open-system perspective views an organization as an entity that takes

inputs from the environment, transforms them, and releases them as outputs in
tandem with reciprocal effects on the organization itself along with the
environment in which the organization operates.
 CONTRIBUTIONS OF
SYSTEM APPROACH TO
Under systems approach, managers have a good view of the
MANAGEMENT
organization.
It gives importance to interdependence of the different parts of
an organization and its environment.
It forecasts plans actions and these consequences.

Systems thinking warns managers against adopting traditional

approach to the problem-solving.
 CONTINGENCY
APPROACH
Also known as situational approach, is a concept in management
stating that there is no one universally applicable set of
management principles (rules) by which to manage organizations.
No one approach is universally applicable and different problems
and situations require different approaches.
It stresses the need for managers to examine the relationship
between the internal and external environment of an organization.
 SIX SIGMA (6Σ) APPROACH
• It was introduced by engineers Bill Smith & Mikel J Harry while working
at Motorola in 1986.
• Jack Welch made it central to his business strategy at General Electric in
1995.
• It is a set of techniques and tools for process improvement. It seeks to
improve the quality of the output of a process by identifying and
removing the causes of defects and minimizing variability in
manufacturing and business processes.
• It uses a set of quality management methods, mainly empirical,
statistical methods, and creates a special infrastructure of people within
the organization who are experts in these methods.
• Each Six Sigma project carried out within an organization follows a
defined sequence of steps and has specific value targets, for example:
ANY QUERY
THANK YOU